Key points:
- AFC Energy shares surged 9.5% after its Methanol Tower’s successful trial.
- The company reported the first successful on-site trial of its new tower.
- The tower can generate hydrogen from methanol, reducing the need for storage.
The AFC Energy plc (LON: AFC) share price surged 9.5% after revealing that its first field trial of its Methanol Fuel Tower with construction company Acciona was successful. The tower generated hydrogen on-site from methanol, pricing the concept viable.
The company wanted to prove the tower’s viability and usefulness in remote areas where it is uneconomical to store and transport hydrogen. The Methanol tower can provide sufficient off-grid power to help decarbonise industries that are hard to abate.
AFC Energy reminded investors that methanol and ammonia have now been recognised as crucial carrier fuels for hydrogen production since they can generate hydrogen on-site, eliminating the need to transport and store the highly combustible gas.
The company was elated to see months of hard work developing the tower pay off as the prototype tests yielded positive results. The Fuel Tower comprises methanol handling systems, fuel reformation and purification technologies, and control and electronic safety systems. The tower also applies discreet intellectual property developed by AFC Energy.
The hydrogen generated by the Mathano Fuel Tower was used to power the AFC Energy Power tower installed by the company at Acciona’s construction site. In addition, the hydrogen supplied by the methanol fuel tower contributed significantly to replacing diesel generators at Acciona’s construction site since the Power Tower was installed in August 2022.
I have covered the impact of the Power Tower on Acciona’s operations and its essential role in helping Acciona reduce its emissions by replacing its diesel generators with the hydrogen fuel tower and its cells.
Adam Bond, AFC Energy’s CEO, said: “Today's announcement is an important step forward in the design and delivery of AFC Energy's Flex Fuel approach to Hydrogen power generation. There are many remote locations where economic supply of hydrogen fuel is not possible and where hydrogen carrier fuels such as ammonia and methanol will play an important role to support the decarbonisation of industry.”
*This is not investment advice.
AFC share price.
The AFC Energy share price rose 9.54% to trade at 24.10p, rising from Friday’s closing price of 22.00p.